South Korean private equity house Hahn & Co has agreed to acquire SK Chemicals’ biofuel business for 382.5 billion won ($322.2 million) in a cash transaction.
The sale of the business, which makes biodiesel and bio-heavy oil, is expected to boost management efficiency of SK Chemicals and enable it to focus on investment for future growth engines of eco-friendly materials and life science, the company said.
The acquisition is slated for completion on May 31 if SK Chemical shareholders approve the transaction in its extraordinary meeting next month.
SK Chemicals reportedly occupied a third of biodiesel market share by the end of 2018. Biodiesel was said to account for around 20 per cent of the company’s annual revenue in the year.
SK Chemicals is present in bio-materials, composites, high-performance materials, energy-saving materials and life science businesses.
This is the fourth SK Group unit that Hahn & Co has acquired following the most recent $3.7-billion acquisition of SK Shipping, used car retailer SK Encar and SK D&D, a real estate and renewable energy developer.
Founded in 2010 by former Morgan Stanley and Sony Korea executives, the private equity firm manages over $6 billion of assets. The buyout firm closed a $3.2-billion fundraise for its third Korea investment fund and a co-investment vehicle in 2019.
By Nguyen Thi Bich Ngoc
Source: Deal Street Asia
Aseptic carton packaging manufacturer SIG has announced it is investing €12 million in a new pilot plant, which will be part of the company’s new Tech Center Europe. The pilot plant will offer modern extrusion and finishing technology, advanced quality measurement systems and testing equipment.
Johnson Matthey has teamed up with waste-to-chemical technologies company MyRechemical to commercially develop waste-to-methanol technology, with the aim of contributing to sustainability.
Upon completion of the project, Kinder Morgan’s Harvey, Louisiana facility will serve as the primary hub where Neste will store a variety of raw materials including, for example, the used cooking oil it collects from more than 40,000 restaurants across the United States.
